Service Tax:

The concept of service tax was first introduced in India in 1994; its scope has gradually increased, in view of the revenue earning potentials. It has now become a buzzword in the taxation laws and envisaged as the tax of the future.

The service tax is payable on all the taxable service rendered in India (except Jammu & Kashmir), whether to an Indian or foreign client. However services rendered abroad shall not attract tax levies, as it extends only to services provided within India.